Office of Governmentwide Policy U.S. General Services Administration Office of Governmentwide Policy CONUS Per Diem and GSA's Rate Setting Process Cy Greenidge Program Manager Travel Management Policy (MTT) Office of Travel, Transportation and Asset Management GSA EXPO 2009

2 What We Will Discuss Background Lodging Methodology FY09 Rate Results/Statistics Plans and Schedule

3 What Are Per Diems? Federal Traveler reimbursement allowances for: Lodging: TDY Meals: Breakfast, lunch and dinner Incidentals expenses: Fees and tips (excluding tips for taxis, airport shuttles, etc.)

4 What Are Per Diems?

5 Background 3 Federal agencies set per diem rates GSA: CONUS DoD: US territories/possessions, Alaska, Hawaii State: Foreign locations 2 Types of Lodging Rates Standard CONUS-Every 3 years Non-Standard Areas (NSAs)-Annually

6 Background Stakeholders: Federal Travelers & Agencies, OMB, GSA, Taxpayers Others: FEBs, eTS, CVBs, hoteliers, travel/lodging industry, Congress …

7 FY09 Lodging Rate Changes

8 Lodging Methodology for NSA ’ s

9 Apply and Run Areas Apply Area: Where rate applies Run Area: Properties selected where feds travel ~10K properties used; Average 25 each NSA

10 Methodology Example Mid-Price Range

Denver, CO – 2009 Per Diem Rates Lodging Properties Selected by Smith Travel Research (STR) for the 2009 Per Diem Rate for the Denver NSA Properties not on this list were NOT: in the run area; on the Fire-Safe List; or within mid-price range!

12 Considerations Used for FY09 Evaluated Standard CONUS Lodging Rate (increased to $70) Excluded low rated properties Extended stay properties Weekend Travel Sensitive Markets (Gulfport Region)

13 Ways to Exceed Per Diem 1)Actual Expense –Agency Approval –Up to 300% of per diem –Agencies discretion FTR reference: § to (

14 Ways to Exceed Per Diem 2) Conference Lodging Allowance (CLA) –Up to 125% of lodging per diem rate to attend or plan conference (government agency sponsoring conference determines amount) –Federally sponsored FTR reference: § (

15 Requests for Reviews Federal Agency Travel Manager writes letter stating per diem is inadequate. Include: 1.Trips annually 2.Address, zip, & rates where they need to stay 3.Frequency actual expense used

16 Requests for Reviews Requests postmarked by 12/31 See # ’ s4 and 5www.gsa.gov/perdiemFAQs # ’ s4 and 5 Rates can increase/decrease/remain unchanged

17 FY09 Special Reviews Bonner’s Ferry/Sandpoint, ID $70 to $76 & $104; $39 to $59 Driggs/Idaho Falls, ID $70 to $76; $39 to $44 Frederick, MD: $89 to $90 *Lexington County, SC $70 to $92; $39 to $44

18 Summary of FY09 CONUS Per Diem Rates Lodging Cost Impact $2.82 Billion (5.7% Increase from FY08) Meals and Incidental Expense Cost Impact $1.24 Billion (.2% Increase from FY08) FY09 Total Per Diem Costs Estimated at $4.06 Billion (3.95% Increase from FY08) $154 Million increase equates to 1% of $13.2 Billion of Overall Travel Spent

Activities - Schedule Sep-Oct 2008 EventDescriptionRequests Received Evaluation Takes placeResults effective Standard CONUS Evaluation Applies to most of CONUS where lodging rates are currently $70 Occurs automatically every 3 yearsMay-July 2010FY11 Existing NSA Evaluation NSAs are areas that have a lodging rate higher than standard CONUS.Occurs automaticallyMay-July /1/09 Posted Aug-Sep NSA Reviews (Existing & New) NSA Reviews in the current fiscal year.By December 31FebruaryFebruary -March New NSA Request Areas in standard CONUS evaluated as future NSA.By March 31May-July /1/09 Posted Aug-Sep Meal Study: A.NSA new in FY B.All Meal rates are based on meals, taxes and tip costs in NSAs.Occurs every 3 years A. Feb, May-June B. April-July 2008 A. Mar 09 and 10/1/08 Posted Aug-Sep B. FY10 Incidental Expense Evaluation Evaluate the rate established for fees and tips (excluding meals).Occurs every 3 yearsFY10

20 Points of Contact Per Diem Team Members: Cy Greenidge (Leader), Cheryl McClain, Travel Director: Craig Flynn,

21 Additional Resources Questions: Notification: Websites: gsa.gov/perdiem

22 Questions